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8/31/2012 11:42AM

Bernanke: Fed Gears Up to Do More to Lift Economy

Fed chairman Ben Bernanke expressed concern over the labor market, defended the central bank's monetary policies and left no doubt he plans to do more to lift the economy at the next meeting in September. Sudeep Reddy reports on Markets Hub. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... can you can see the Federal Reserve chairman Ben burn Anqi ... earlier today in Jackson Hole Wyoming walking for three with eventually ... delivered his much anticipated speech this morning ... we have that speech and will play right now Fed Chairman expressed doubts about this of the strength of the labor market ... offered vigorous defense of the central bank policies ... will lead to very little doubt that he leaned toward doing more ... to help the economy ... the only question now is that I mean good morning everyone welcome to the markets up I am Paul vignette glad to get to be talking about ... the markets today actually ... I this is a bigger than Ben burn Anqi in Jackson hole the speech ... seems to lay the groundwork for QE three for another bond buying program Sudeep Reddy is with us in Washington ... I'd to be given to a Samoan word yes or no ... yes yes ... update your words ... the head so why is it is as you noted that I mean it and ... I that is is obviously was critically important what struck me going through this beach in bed reading burning key speeches for five years and ... I did this actually seemed to be a ... compilation of the greatest hits of how grenade he makes the case for quantitative easing for a new policy new easing policy at the walkers step by step to wrap this entire speech ... about all of his best case for doing more ... he also walked through the criticism of city can easily dismiss them and that's what's really important is how easily he dismissed the criticism ... of these policies he acknowledges that he said there are important ... but he made it very clear that the criticism of the drawbacks are going to stop him from acting and that's what really matters here the acting directing care if it is a critical point because even a hint in his own speeches this summer he's been sort of talking about the downside of doing more the risks of doing more and we know Richard Fisher the Dallas Fed president this week at a very important paper come out talking about the downsides of it ... the fact that he is now syrup appalling those downsides ... that it back to the EU covered in the sulky leave reading thing which we are ... that is sort of an indication that ... something's coming right ... exactly he wanted to make it very clear that he's not going to ... be swayed ... terribly by the hawks that the Fed people were speaking the loudest cry and in trying this criticism to the idea of QE three is making clear eyed euro very careful process and this is a Fed chairman who of course is a PhD economist was an academic and to see a speech like this which is certainly one of his longest buying his tenure at the Fed ... I it's cut fifty academic references references to both speeches and academic work ... I thirty one ... the footnotes in a he's really very careful in making this case and that's what's what's important here is he's trying to ... to to circle the wagons in a way to make it clear that when the time times is get into this pretty obviously didn't offer any signals ... that he's going to take action at the September twelve and thirteen meeting and that's that it'd be the big thing that's hanging over us as we wanted it in the next two weeks yet ... let's talk about what he said about the economy for second to the obviously very very important ... I'll what the state seem like ... despite all the same thing dealing in the last couple weeks last few months it seemed to say the economy's getting a little better ... he's not convinced ... he's not convinced he was out making that the argument that a lot of these problems are due to ... higher cyclical issues rather than structural issues are two points at a really important one is that he said ... by the state of the labor market is a grave concern that the Fed is that there be justification for acting is really the weakness of the labor market just as ... the sorry jobs market that we've we've got he wants to see unemployment drop you want to see perils improve ... that's a very clear signal that he hasn't seen enough that's a big piece of of economic ... argument in this I mean least in terms of the Economic ditty as seen in to get ... the others where he says he died when he cites is the reasons for the slow recovery ... besides housing which of course I we we were just coming out of the steep downturn of the few years more ... of ... a slow recovery and many sites ... on fiscal policy to try to ... point out that it's the state local governments and Congress that need to ... deal with a lot of this problem then of course he he mentions ... the add the drag from Europe to the uncertainty around Europe ... those are all problems that ... I'm that he is bathed in speeches before but now I it's very clear ... that by two of the three ... are these domestic issues that could be dreaded addressed here rather than focusing on the euro points ... write it again Tisha Converse taught about on the fiscal policy ... he admits RTE said Central Central Bank policy is not a panacea ... he know is that the central bank can solve all the economy's problems and I mean if it's often said that they expect unemployment to be high for years ... so it seems like ... he's not saying look what to do another big bond buying program that's going to be a great thing he's saying we have to do something it seems to me actually saying ... he is a guide I read that ... the phrase that you you mention there are few times because he he's used the ... deadline of monetary policy is not a panacea dozens and dozens of times in the last year he's very clear about that but when he was really pushing ... that Congress and making clear that the Fed's actions cannot offset ... the damage from faulty fiscal policy those that have the backing your core Congress message and if if ... it turns out in two weeks the Fed doesn't take you actually doesn't launch QE three right now and said we'd still after the election ... I he's probably going to be resting on that line that he needs to see more on fiscal policy because whatever the Fed as they can make up for a deeply damaging problem from the fiscal cliff and so he's making it clear that sense that ... looks like in Europe ... and he wants to see action from fiscal ... policy makers ... I'm that that is that they matter a lot more of the monetary policy at this point ... right I mentally appears to be pink immature time appreciate it ... ahh and I mean till the Fed chairman is not just aren't speaking at the speech came at a ten and his speeches scheduled ... for ten am ... hasn't actually started speaking it but we're Nino the de tails of it